2010 House Bill 5810 (Expand sales tax to services )

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Introduced by Rep. Alma Smith (D) on February 16, 2010, to expand the sales tax to include consumer services, and reduce the sales tax rate to 5.5 percent. Reportedly the net effect of these changes would be to extract $900 million more from taxpayers (other reports suggest $1.3 billion). Gov. Jennifer Granholm has proposed this measure in combination with a business tax that would be phased in gradually, resulting in a temporary tax increase of some $875 million (or more) over two years.
- Referred to the House Tax Policy Committee on February 16, 2010.

Most Recent Comments

1) Re: 2010 House Bill 5810 (Expand sales tax to services ) [by gypsy on May 4, 2010]

[quote user="FreeSpeaker"]Why the aversion to seriously discussing the fairest kind of tax, a graduated income tax?[/quote]

Because those with the highest incomes have the most influence in our government.

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2) Re: 2010 House Bill 5810 (Expand sales tax to services ) [by FreeSpeaker on April 29, 2010]

Why the aversion to seriously discussing the fairest kind of tax, a graduated income tax?

Instead, we get cockamamie proposals like this, to extend the regressive sales tax, which impacts most heavily and so, most unfairly, on those Michiganders at the lower ends of the economic and income scale.

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3) Re: 2010 House Bill 5810 (Expand sales tax to services ) [by Mike Hignite on April 27, 2010]

This tax was trying in Florida years ago and was a complete disaster to administrate and operate. I see no improvement. Why are you exempting business-to-business transactions? Semi-wholesale exemption idea? Pseudo-VAT approach? Too confused to understand what you are doing to the economy?

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